ON CAPITOL HILL

Obama faces 'buy American' revolt

Members of Congress lift veil on top-secret negotiation

Published: 05/04/2012 at 12:53 PM

(HUFFINGTON POST) WASHINGTON — A group of 68 House Democrats and one Republican sent a letter to President Barack Obama on Thursday urging him to reconsider an element of the controversial free trade agreement currently being negotiated by the administration. If approved in its current form, the pact would effectively ban “Buy American” policies in government contracting.

Although the deal, known as the Trans-Pacific Partnership, has received relatively little media attention in the United States, it has sparked international friction among consumer groups and environmental activists who worry that terms demanded by the Obama administration will eliminate important public protections. Domestically, however, the deal’s primary source of political tension is from a portion that could ban “Buy American” provisions — a restriction that opponents emphasize would crimp U.S. jobs.

Since the 1930s, the American government has offered preferential treatment to American producers in the awarding of federal contracts. If a domestic producer offers the government a more expensive bid than a foreign producer, it can still be awarded the contract under certain circumstances, but more recent free trade agreements have granted other nations the same negotiating status as domestic firms. The Obama administration is currently pushing to grant the several nations involved in the Trans-Pacific deal the same privileged status, according to the Thursday letter.